Cal-Maine Foods (NASDAQ:CALM) Shares Gap Down on Disappointing Earnings

Key Points

• Cal-Maine Foods' stock price dropped significantly, opening at $87.00 after announcing weak quarterly earnings of $4.12 per share, which fell short of analysts' estimates of $4.55.
• The company also reported a revenue of $922.60 million, missing expectations, but showed an increase of 17.4% compared to the same quarter last year.
• Despite the earnings miss, Cal-Maine Foods increased its quarterly dividend to $3.46, representing an annual yield of 15.2%, and maintaining a dividend payout ratio of 37.72%.

Cal-Maine Foods, Inc. (NASDAQ:CALM - Get Free Report)'s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $94.10, but opened at $87.00. Cal-Maine Foods shares last traded at $92.62, with a volume of 584,624 shares.

The basic materials company reported $4.12 earnings per share for the quarter, missing analysts' consensus estimates of $4.55 by ($0.43). The business had revenue of $922.60 million for the quarter, compared to analysts' expectations of $931.62 million. Cal-Maine Foods had a return on equity of 54.81% and a net margin of 28.63%.The business's revenue for the quarter was up 17.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.06 earnings per share.

Cal-Maine Foods Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 19th. Stockholders of record on Monday, August 4th were issued a $3.46 dividend. The ex-dividend date was Monday, August 4th. This represents a $13.84 annualized dividend and a dividend yield of 15.2%. This is an increase from Cal-Maine Foods's previous quarterly dividend of $1.49. Cal-Maine Foods's dividend payout ratio (DPR) is currently 37.72%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on CALM shares. Stephens lifted their target price on shares of Cal-Maine Foods from $108.00 to $115.00 and gave the company an "equal weight" rating in a report on Thursday, July 24th. The Goldman Sachs Group initiated coverage on Cal-Maine Foods in a research note on Thursday, August 14th. They issued a "neutral" rating and a $110.00 price objective for the company. BMO Capital Markets increased their target price on Cal-Maine Foods from $100.00 to $105.00 and gave the stock a "market perform" rating in a research note on Thursday, July 24th. Finally, Wall Street Zen downgraded Cal-Maine Foods from a "buy" rating to a "hold" rating in a research report on Saturday, August 23rd. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $110.00.

Institutional Investors Weigh In On Cal-Maine Foods

Large investors have recently bought and sold shares of the stock. IFP Advisors Inc increased its stake in shares of Cal-Maine Foods by 195.1% during the second quarter. IFP Advisors Inc now owns 239 shares of the basic materials company's stock worth $25,000 after buying an additional 158 shares during the period. Financial Management Professionals Inc. acquired a new position in Cal-Maine Foods during the 1st quarter worth approximately $30,000. Investment Management Corp VA ADV increased its position in shares of Cal-Maine Foods by 172.2% in the 1st quarter. Investment Management Corp VA ADV now owns 392 shares of the basic materials company's stock valued at $36,000 after purchasing an additional 248 shares during the last quarter. AdvisorNet Financial Inc acquired a new stake in shares of Cal-Maine Foods in the 2nd quarter valued at $54,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Cal-Maine Foods in the 1st quarter valued at $52,000. Hedge funds and other institutional investors own 84.67% of the company's stock.

Cal-Maine Foods Stock Performance

The company's 50-day moving average price is $108.07 and its 200-day moving average price is $100.35. The firm has a market capitalization of $4.47 billion, a PE ratio of 3.65 and a beta of 0.27.

Cal-Maine Foods Company Profile

Cal-Maine Foods, Inc, together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names.

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